Racco Electric Kei Car Debuts, Introducing New Competition to Japan’s Market
On July 28, BYD unveiled its first electric kei car, the Racco, targeting Japan’s substantial kei car market. The Racco is equipped with lithium iron phosphate (LFP) batteries, offering two battery options: 22.4 kWh and 35.8 kWh, with a maximum WLTP range of 199 kilometers, surpassing existing competitors such as the Nissan Sakura and Honda N-One E. The vehicle supports DC fast charging up to 100 kilowatts, outperforming rivals in charging speed.
The entry-level Racco is priced below 2 million yen (approximately $11,900 before taxes and incentives), nearly 20% cheaper than the Nissan Sakura’s starting price of 2.4 million yen (~$14,600). Standard features include powered sliding doors, bidirectional charging, a digital key, a 10.1-inch central touchscreen, and heated front seats and steering wheel, setting a new benchmark for equipment levels in its class.
Japan’s Kei Car Market Faces Intensified Competition as BYD Seeks Breakthrough
Japan’s kei car market is substantial, with approximately 4.5 million new cars sold in 2025, of which 1.6 million were kei cars. This segment has long been dominated by Japanese brands such as Toyota, Nissan, Honda, and Mitsubishi, but the shift toward electrification is introducing new dynamics. Electric kei cars like the Nissan Sakura, Honda N-One E, and Mitsubishi eK X have been introduced in recent years, though their range and charging efficiency still leave room for improvement.
BYD sold just over 3,000 vehicles in Japan last year, holding a minimal market share. The launch of the Racco is seen as a strategic move to strengthen BYD’s presence in Japan. Kei cars are popular in Japan due to their compact dimensions, which suit narrow streets, as well as their lower tax, insurance, and fuel costs. With the transition to electrification, range and charging convenience have become key consumer concerns, and the Racco addresses gaps in the current offerings.